BMI View: Growth in the Philippines construction sectorsurged inQ414, with amassivereal expansion of20.5% year-on-year (y-o-y).Reconstruction efforts stemming from the after-effects of Typhoon Yolanda in late 2013 shouldcontinue toprovide a strong tailwind for construction activitythroughout 2015and we forecast the sector will experience real growth of 9.4%.

Key Trends And Developments

In December 2014, The Department of Transportation and Communications and the Civil Aviation Authority of the Philippines invited bids from interested parties for six regional airport projects worth PHP116.23bn (USD2.59bn), according to a notice published in three newspapers. The contracts are for the financing, design, construction, operation and maintenance of the airports for 30 years. The six projects are: PHP4.57bn (USD102.1mn) New Bohol (Panglao) Airport; PHP5.81bn (USD129.8mn) Puerto Princesa Airport; PHP14.62bn (USD326.6mn) Laguindingan Airport; PHP20.26bn (USD452.6mn) Bacolod-Silay International Airport; PHP30.40bn (USD679.2mn) Iloilo Airport; and PHP40.57bn (USD906.4mn) Davao International Airport. The projects will be developed under a public-private partnership programme. The invitation to bid for projects to operate six of the Philippines' regional airports under the government's Public-Private Partnership scheme suggests that further momentum is building in the sector, and highlights opportunities presented by growth in the country's tourism industry. We note that risks of project delays still remain.

In early February 2015 The Asian Development Bank (ADB) approved a USD75mn loan for the expansion and renovation of Mactan-Cebu International Airport in the Philippines, to improve passenger traffic and support inclusive growth. Funding for the expansion project includes PHP20bn (USD450mn) debt from a consortium of BDO Unibank, Bank of the Philippine Islands, Philippine National Bank,Land Bank of the Philippines, Metrobank and...

Table: Major Projects Table - Residential/Non-Residential Construction And Social Infrastructure

71

Industry Risk Reward Ratings

73

Philippines - Infrastructure Risk/Reward Ratings

73

Rewards

73

Risks

74

Asia Pacific - Infrastructure Risk/Reward Ratings

75

Developed Markets: Favoured

76

Giants Of Asia: Rewards Sizeable, Risks Sizeable

78

South East Asia: Political Risks Rises

80

Table: Asia Pacific Infrastructure Risk Reward Ratings

83

Market Overview

84

Competitive Landscape

84

Table: EQS Data

84

Table: Philippines - Projects Under PPP Programme, At Advanced Stage

86

Table: Philippines - Projects Under PPP Programme, At Early Stage

87

Company Profile

93

EEI Corporation

93

First Balfour

97

San Miguel Corporation (SMC)

101

Global Infrastructure Overview

108

Middle East/North Africa Presents Strongest Investment Profile

108

Methodology

114

Industry Forecast Methodology

114

Sector-Specific Methodology

115

Risk/Reward Rating Methodology

119

Sector-Specific Methodology

120

Table: Infrastructure Risk/Reward Rating Indicators

120

Table: Weighting Of Indicators

121

The Philippines Infrastructure Report features BMI Research's market assessment and forecasts covering public procurement and spending on all major infrastructure and construction projects, including transportation and logistics by land, sea and air; power plants and utilities, and commercial construction and property development. The report analyses the impact of regulatory changes and the macroeconomic outlook and features competitive intelligence on contractors and suppliers.

Key Benefits

Benchmark BMI's independent infrastructure industry forecasts for Philippines to test other views - a key input for successful budgetary and planning in the Philippine infrastructure market.

Target business opportunities and risks in the Philippine infrastructure sector through our reviews of latest industry trends, regulatory changes and major deals, projects and investments in Philippines.

Assess the activities, strategy and market position of your competitors, partners and clients via our Company Profiles (inc. SWOTs, KPIs and latest activity).

Coverage

BMI Industry View

Summary of BMI’s key industry forecasts, views and trend analysis covering infrastructure and construction, regulatory changes, major investments and projects and significant national and multinational company developments. These are broken down into construction (social, commercial and residential), transport (roads, railways, ports, airports, etc), and energy & utilities (powerplants, pipelines and so on).

Industry SWOT Analysis

Analysis of the major strengths, weaknesses, opportunities and threats within the infrastructure and construction sectors and within the broader political, economic and business environment.

BMI Industry Forecasts

Historic data series (up to 2012) and forecasts to end-2024 for all key industry indicators, supported by explicit assumptions, plus analysis of key developments in the market and risks to the main forecasts. Indicators include:

Construction industry real growth forecasts (%) and industry value (USDbn) forecasts for industry sectors are split into Residential and Non-residential and Infrastructure sectors. Where the data is available for particular countries the infrastructure is further broken down into indicators for the transport subsectors of roads, railways, airports and ports and the energy and utilities sub-sectors of power plants and transmission grids, oil & gas pipelines and water infrastructure. This dataset is unique to the market.

The reports also include analysis of latest projects across the infrastructure sectors (transport, utilities, commercial construction).

BMI’s Infrastructure Risk Reward Index

BMI’s Risk Reward Index provides investors (construction companies, suppliers and partners) looking for opportunities in the region with a clear country-comparative assessment of a market’s risks and potential rewards. Each of the country markets are scored using a sophisticated model that includes more than 40 industry, economic and demographic data points. These provide indices of highest to lowest appeal to investors, with each position explained.

Market Overview

An assessment of the competitive landscape and key challenges to entering the market. Details of the largest companies active in the sector across the sub-segments of the industry, including the key financial figures from some of the largest players in the sector.

Company Profiles*

Examines the competitive positioning and short- to medium-term business strategies of key industry players. Strategy is examined within the context of BMI’s industry forecasts, our macroeconomic views and our understanding of the wider competitive landscape to generate company SWOT analyses. The latest financial and operating statistics and key company developments are also incorporated within the company profiles, enabling a full evaluation of recent company performance and future growth prospects.

Sources

The Infrastructure reports draw on an extensive network of primary sources, such as multilateral organisations, government departments, industry associations, chambers and company reports.

*Company profiles are not available for every country. Those reports instead contain information on the current activities of prominent companies operating in the market.

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Testimonials

'An essential, multi-faceted research tool. BMI’s thorough understanding of the major market players enables an informed – and informative – review of the sector’s actual performance, together with useful insights into current industry issues, which are topped-off with detailed and invaluable forecasts of industry and macroeconomic trends.’